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Automotive telematics insurance is a motor insurance cover customized by monitoring real-time driving and underwriting the risk. Telematics insurance comprises a SIM card, motion sensor, GPS system, and a computer module. The telematics insurance device, also called black-box, is fitted in the OBD-II portal of the vehicle. The device captures and transfers real-time data of the vehicle to the insurance company in order to track the vehicle and analyze the accident risks based on route of commute, speed of vehicle, miles driven, and late hour ride.

Demand for low insurance premium among consumers is primarily driving the automotive telematics insurance market. Several consumers who seldom use their vehicles, do not use highways, and drive at safer speeds and have a lower risk of accidents; however, they end up paying the same premium as other customers who are insured with higher accidental risk. Therefore, telematics insurance enables such riders to be charged at lower premiums. Insurance companies can attract low risk drivers and can positively reduce claim expenses by employing telematics. The automotive telematics insurance market is driven by the necessity of insurance companies to underwrite the risk effectively, and to be able to maintain actuarial reserves. Rising trend of vehicle connectivity is driving the automotive telematics insurance market. Mandates on adoption of telematics by governments, such as eCall in Europe, are driving the automotive telematics insurance market.

The global automotive telematics insurance market can be segmented based on technology, insurance type, vehicle, and region. Based on technology, the automotive telematics insurance market can be segregated into mobile application and embedded device. The embedded device segment is expected to lead the global market, as these are used for telematics as well as vehicle connectivity. Embedded devices are being increasingly deployed by automakers as standard fitment for vehicle connectivity and to support the telematics feature.

In terms of insurance type, the global automotive telematics insurance market can be classified into pay-as-you-drive, pay-how-you-drive, and pay-as-you-go. The pay-how-you-drive segment is expected to expand due to its behavior based model that estimates the risk and hence, is highly effective for both the insurance company and the insured. The pay-how-you-drive type of insurance has been widely accepted by fleet owners in North America.

Based on vehicle type, the global automotive telematics insurance market can be bifurcated into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The commercial vehicle segment is projected to expand as public transport and commercial fleet owners are adopting telematics in order to reduce operational costs.

In terms of region, the global automotive telematics insurance market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe leads the global automotive telematics insurance market owing to the high rate of adoption of telematics insurance in the U.K. and Italy. Europe is followed by North America and Asia Pacific, in terms of share of the global market, owing to the high demand of automotive telematics in the U.S., Canada, and Japan.

Key players operating in the global automotive telematics insurance market are Octo Telematics Ltd., TELOGIS, Aplicom, MiX Telematics, Agero Inc., Ctrack Maternaut Limited, Sierra Wireless, AirIQ Inc., and Trimble Inc. 

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

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Below is a snapshot of these quadrants.

1. Customer Experience Map

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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

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Automotive Telematics Insurance Market

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